2017 (2) TMI 865 - SCH - Income Tax

Review petition against the SC order 2016 (10) TMI 704 - SUPREME COURT - Partnership firm - Nature of the Certain considerations received after the dissolution of the firm - Slump sale or not - capital gain - Goodwill - Held that - We find no error much less apparent in the order impugned. The review petitions are, accordingly, dismissed. The partnership firm had dissolved and thereafter winding up proceedings were taken up in the High Court. The result of those proceedings was to sell the assets of the firm and distribute the share thereof to the erstwhile partners. Thus, the transfer of the assets triggered the provisions of Section 45 of the Act and making the capital gain subject to the payment of tax under the Act.The appellants as erstwhile partners are liable to pay capital gain on the amount received by them towards the value of their share in the net assets of the firm are liable for payment of capital gains u/s 45 of the Act. Business income/revenue income in the Assessment Year in question is to be assessed at the hands of AOP-3, in terms of the orders of the High Court, as AOP-3 retained the tax amount from the consideration which was payable to the assessees herein and it is AOP-3 which was supposed to file the return in that behalf and pay tax on the said revenue income.

Summary

The Supreme Court dismissed review petitions against an order partly allowing appeals dated 18.10.2016, after finding no error in the impugned order. Delay was condoned.